Which of the following is an example of direct labor cost for an airplane manufacturer?
A) Cost of wages of janitors
B) Cost of wages of assembly worker
C) Salary of plant supervisor
D) Salary of the chairman

Question

Quizplus · Accepted Answer

Direct labor cost refers to the wages or salaries paid to employees who are directly involved in the manufacturing of a product. Assembling airplanes is a direct labor activity, therefore the cost of wages of assembly worker is an example of direct labor cost. The cost of wages of janitors (A) is an example of indirect labor cost as they are not directly involved in the production process. The salary of plant supervisor (C) is also an example of indirect labor cost as they do not perform any physical production activity. The salary of the chairman (D) is an example of overhead cost.

Which of the Following Is an Example of Direct Labor